Gambling on the Future: Casino Enclaves, Development, and Poverty Alleviation in Laos Kearrin Sims
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Gambling on the Future: Casino Enclaves, Development, and Poverty Alleviation in Laos Kearrin Sims Abstract Following the extraordinary wealth generation of casinos in Macau and Singapore, governments and non-state actors across Southeast Asia have developed gambling establishments as a means of fast-tracking economic growth and stimulating national development. Yet, here and elsewhere, casinos have been heavily criticized for their association with immoral behaviour, problem gambling, corruption, and organized crime. In this article, I focus on two casinos in northern Laos to address two research questions. First, I consider how casinos have come to exist within the remote border regions of one of Asia’s least developed countries. I discuss vice economies within the Golden Triangle region, multi-actor aspirations to boost transnational connectivity within continental Southeast Asia, strengthening political-economic relationships between Laos and China, and Government of Laos efforts to use foreign investment as a mechanism for increasing governance capacities in borderlands. Following this, I critically analyze the relationship between casinos and development in Laos. I focus specifically on the multifarious effects of casinos on the lives and livelihoods of local communities to argue that casino development has been informed by logics of expulsion and the establishment of new predatory formations. To make this argument, the article draws on four fieldwork visits to each of the casino sites between 2011 and 2015, desk- based research, and interviews with local residents, casino staff, and members of the Government of Laos. Keywords: Laos, casinos, expulsion, Chinese tourism, special economic zone, Greater Mekong Subregion DOI: http://dx.doi.org/10.5509/2017904675 Introduction ince Macau first liberalized its casino industry in 2002, there has been a rapid expansion of gambling establishments within Southeast Asia. SIn Cambodia, more than fifty casinos are currently operating, in the __________________ Kearrin Sims is a lecturer in Development Studies at James Cook University, Cairns, Australia. He is also an adjunct research fellow with Western Sydney University’s Humanitarian and Development Research Initiative (HADRI). Email: [email protected] © Pacific Affairs: Volume 90, No. 4 December 2017 675 Pacific Affairs: Volume 90, No. 4 – December 2017 Philippines billions of dollars are being spent on integrated casino resorts, and in Laos, Malaysia, Myanmar, Singapore, and Vietnam, casinos have become increasingly prominent components of burgeoning intraregional tourism markets.1 In short, casinos are now a notable feature of the region’s political economy. As evidenced in the work of Warren, Southeast Asia’s contemporary gaming sector builds on a long history of commercial gambling.2 Yet, as Zhang and Yeoh have argued, the current phase of casino gambling appears to be intimately associated with neoliberal capitalism’s “insatiable drive for geographical expansion and economic interconnection.”3 As new aggregations of leisure, tourism, employment, and consumption, casinos have become dynamic sites of global connectivity that have produced new governance arrangements and partnerships between the state and private sector, and generated new movements of people, commodities, and capital.4 Following the massive financial revenues generated by Macau’s and Singapore’s gaming sectors, casinos have also been increasingly perceived by state and private actors as remarkable assets for stimulating economic growth and development. In 2013, Macau’s thirty-five casinos produced gaming revenues seven times greater than the entire Las Vegas strip. At US$45 billion, such revenues have allowed for massive investment in social services and public infrastructures that have assisted the small self-administrating region’s 600,000 residents in attaining the world’s fourth-highest life expectancy and GDP per capita indices.5 Singapore’s two casino resorts, the Marina Bay Sands and Resorts World Sentosa, also recorded combined 2013 profits exceeding the Las Vegas strip, and have played a pivotal role in the __________________ 1 Erin Lin, “The Socio-economic Impact of Border Casinos in Rural Cambodia,” paper presented at Beyond the State’s Reach: Casino Spaces as Enclaves of Development or Lawlessness?, IIAS Workshop, Phnom Penh, Cambodia, 21–23 August 2015; Muhammad Cohen, “Amid Philippine Transition, Ghost of Presidencies Past Rises In Razon Casino Plan,” Forbes Asia, 14 May 2016, accessed 1 June 2016, http://www.forbes.com/sites/muhammadcohen/2016/05/14/amid-philippine-transition-ghost-of -presidencies-past-rises-in-razon-casino-plan/#4bacb1e979ec. 2 James Warren, Gambling, the State and Society in Thailand, c. 1800-1945 (New York: Routledge, 2013). 3 Juan Zhang and Brenda S.A. Yeoh, “Harnessing Exception: Mobilities, Credibility, and the Casino,” Environment and Planning A 48, no. 6 (2016): 1065, doi: 10.1177/0308518X15609175. 4 Zheng Gu, “Macau Gaming: Copying the Las Vegas Style or Creating a Macau Model?” Asia Pacific Journal of Tourism Research 9, no. 1 (2004): 89–96; Joan Henderson, “Betting on Casino Tourism in Asia: Singapore’s Integrated Resorts,” Tourism Review International 10, no. 3 (2006): 169–179; Sytze F. Kingma, ed., Global Gambling: Cultural Perspectives on Gambling Organizations (New York: Routledge, 2010); Zhang and Yeoh, “Harnessing Exception.” 5 Tim Simpson, “Non-State Actors, Informal Networks, and Resurgent Medievalism in Macau’s Casino Industry,” paper presented at Beyond the State’s Reach: Casino Spaces as Enclaves of Development or Lawlessness?, IIAS Workshop, Phnom Penh, Cambodia, 21–23 August 2015, 16–17; Central Intelligence Agency (CIA), “The World Factbook: Macau” (2016), accessed 1 June 2016, https://www.cia.gov/library/publications/the-world-factbook/geos/mc.html. 676 Casino Enclaves and Development in Laos country’s rejuvenation as a “must-see” luxury destination of highly ordered investment and consumption.6 Yet, in Southeast Asia and elsewhere, casinos have also been heavily criticized for their association with immoral behaviour, gambling addiction, corruption, and organized crime.7 In the United States, Grinols has demonstrated links between the gaming sector, suicide, and bankruptcy, while in Myanmar and Cambodia Nyíri and Sripana, respectively, have reported casino-related violence and predatory money lending.8 Concerning Macau, Zandonai has argued that casino industries have undermined the livelihoods of small and medium enterprises, Sheng and Tsui have suggested that an uneven distribution of casino wealth has caused “serious social division,” and Hing has demonstrated a relationship between casino gambling, money laundering, and criminal violence.9 Consequently, whether or not casinos are beneficial or destructive to national socio-economic development and community well-being remains the subject of much debate. In this article, I explore the complex political-economic entanglements surrounding two casinos in northern Laos. In a country where more than 70 percent of the population are agriculturalists and the vast majority of foreign investment has been directed towards natural resource extraction, casinos have been championed as new mechanisms for development that will boost foreign investment, increase state revenues, offer new employment opportunities, and bring urbanization and public infrastructures to remote border regions.10 However, of the two casinos to operate in the country’s north, one has been closed following media reports of kidnapping, assault, and murder, and the other has faced criticism in the international media __________________ 6 Zhang and Yeoh, “Harnessing Exception,” 1072. 7 Gu, “Macau Gaming”; Chan Yuk Wah, “Fortune or Misfortune? Border Tourism and Borderland Gambling in Vietnam,” in Asian Tourism Growth and Change, ed. Janet Cochrane (Oxford: Elsevier, 2008), 145–156; Li Sheng and Yanming Tsui, “Casino Booms and Local Politics: The City of Macau,” Cities 26, no. 2 (2009): 67–73; Davis K.C. Fong, Hoc Nang Fong, and Shao Zhi Li, “The Social Cost of Gambling in Macao: Before and After the Liberalisation of the Gaming Industry,” International Gambling Studies 11, no. 1 (2011): 43–56; William Vlcek, “Taking Other People’s Money: Development and the Political economy of Asian Casinos,” The Pacific Review 28, no. 3 (2015): 323–345; Sheyla Zandonai, “Gambling and the Colonization of Space: Enclaves, Sprawling and Contrasted Spaces in Macau,” paper presented at Beyond the State’s Reach: Casino Spaces as Enclaves of Development or Lawlessness?, IIAS Workshop, Phnom Penh, Cambodia, 21–23 August 2015. 8 Earl Grinols, Gambling in America: Costs and Benefits (New York: Cambridge University Press, 2004); Pál Nyíri, “Enclaves of Improvement: Sovereignty and Developmentalism in the Special Zones of the China-Lao Borderlands,” Comparative Studies in Society and History 54, no. 3 (2012); Thanyathip Sripana, “Casinos and Threat to Social Stability,” paper presented at Beyond the State’s Reach: Casino Spaces as Enclaves of Development or Lawlessness?, IIAS Workshop, Phnom Penh, Cambodia, 21–23 August 2015. 9 Lo Shiu Hing, “Casino Politics, Organized Crime and the Post-colonial State in Macau,” Journal of Contemporary China 14, no. 43 (2005): 207–224; Sheng and Tsui, “Casino Booms,” 68; Zandonai, “Gambling and the Colonization of Space.” 10 Central Intelligence Agency (CIA), “The World Factbook: Laos,” (2016), accessed 1 June 2016, https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html.